5 Reasons Why Auto Insurance Premiums Go Up

Posted on by Defensive Driving | in Defensive Driving Tips

We all know auto insurance is a necessity. However, sometimes premium spikes in insurance coverage seem to be unavoidable at times. As a result it has been advisable to shop around for the best rate on auto insurance you can find. Despite your best efforts, there are certain conditions that almost guarantee an auto insurance spike. Here are 5 reasons why insurance premiums go up:

Mercedes Benz cars in traffic

New Insurance Quotes

Auto insurance companies often quote one price and after crafting a policy the final cost is more than the quote. Why do automobile insurance quotes go up?

All auto insurance companies need to assess and balance the risk-to-reward ratio. Insurance companies assess profitability based on a potential customer’s driver record and habits.

Dodge Charger 2018 Dashboard

Insurance Quotes for New Vehicles

The value of a new car is more than that of an older vehicle. It stands to reason that replacing the newer model will be more expensive than replacing an older vehicle. When purchasing a new vehicle you should expect to see a rise in your insurance premiums.

Automobile insurance carriers use a combination of factors to attempt to give you a new vehicle insurance quote. They look at your driving record, vehicle make, model year, occupation and credit history. If the insurance carrier qualifies you as low-risk you will see low rates, comparatively speaking. Brushes with the law, and a poor credit history means a higher than average insurance quote.

In addition to the aforementioned, if you lease or finance a new vehicle, most lenders and state laws require full insurance coverage.

Moving Further Away From Work

The idea here is that the further you have to drive to work, the greater the risk that you could get into an automobile accident. If your employment requires frequent driving it may also add to your monthly auto insurance premiums.

Single vs. Married

Auto insurance providers categorize policy holders based on their marital status. Insurance companies categorize single individuals as high risk investments. Married customers with children are considered a lower risk.

Traffic Violations

Auto insurance companies frequently scan for any recent traffic violations and citations. If they learn of any misconduct or pending cases for moving violations you might see a one to two year premium spike.

|

Customer Reviews

Defensivedriving.com has a ShopperApproved rating of 4.7 based on 95330 ratings and reviews.

Cesar
Easy and simple to use.
Roope
Quick, fast and easy!
Diana United States
The course was very helpful and easy to follow. I highly recommended for anyone
Adrian United States
Easy and fast
Allison United States
Easy, simple course!
Brynwyn
Quick and easy!
Kimberly
Straight to the point, easy to navigate site.
Norma United States
The course will be quick and convenient to take from home.
Christina TX, United States
I would recommend you all to everyone over all the other course sites. There are no hidden fees, easy to navigate and same day certificate and driving record. Fantastic!!! Thank you!!
Barbara
Fast and easy
Travis TX, United States
It was quick and easy
James TX, United States
Very simple and easy to follow.
Thomas
So easy to use!
Alexandra
Easy to sign up!
Raylan
Fast & Easy
Jason
Quick and easy.
Ronda United States
Clearly the system is set up for dismissing a ticket not so much for insurance discount. I had to call customer service and have them walk me through the process.
Alejandro
Quick and easy
Mohammed TX, United States
Learned so much, very easy and simple way to become better driver
Michael
Website is easy to navigate
Ricardo
Everything is smooth and efficient
Shanna
Its easy to use!
Julian TX, United States
Everything is so easy to understand and very simple to navigate.
See all reviews on shopperApproved.com
Why DefensiveDriving.com
  • 20 Years in Business
  • Over 2 Million Customers Served
  • Highest Possible Better Business Bureau Rating
  • Award Winning Course